Agree Realty's New Offering: $400 Million of Senior Unsecured Notes Set to Strengthen Growth Strategy

Agree Realty's Public Offering of Senior Unsecured Notes



In a strategic move to fortify its financial position, Agree Realty Corporation has announced an offering of $400 million in senior unsecured notes due by 2035. This decision not only reflects the company’s ambition but also aligns with its growth strategy for the coming years.

Details of the Offering


The notes, which have been priced at 5.600%, aim to strengthen Agree Realty's liquidity, which is anticipated to reach a record $2.6 billion following the successful closure of this offering. With a public offering price set at 99.297% of the principal amount, the effective yield to maturity stands at 5.692%.

Peter Coughenour, the Chief Financial Officer, emphasized that this move is crucial for extending the company’s weighted-average debt maturity and ensuring a robust balance sheet, with the assurance of no significant debt maturities until 2028.

Use of Proceeds


The proceeds from this offering are expected to be utilized for various corporate purposes, including:
  • - Reducing outstanding debts, which will enhance financial stability.
  • - Funding property acquisitions and development activities, paving the way for future growth and expansion within the real estate market.
These strategic allocations are designed to position Agree Realty for substantial growth and development in a rapidly evolving market landscape.

Financial Guidance & Managerial Roles


The offering is scheduled to close on May 23, 2025, pending standard closing conditions. Notably, J.P. Morgan, Mizuho, and several other notable financial institutions are acting as joint book-running managers.

Further engagements will be facilitated by Regions Securities LLC, US Bancorp, and Morgan Stanley, highlighting a collaborative approach in managing this financial endeavor.

The Road Ahead


Agree Realty Corporation is a publicly traded real estate investment trust (REIT), recognized for its commitment to Rethinking Retail through the acquisition and development of net-leased properties featuring industry-leading, omni-channel retail tenants. As of March 31, 2025, the firm operates a portfolio of 2,422 properties across the United States, contributing approximately 50.3 million square feet of gross leasable area.

With the current uncertainties influencing global economic conditions and a slow rebound from recent challenges, the strategic outlook and financial moves made by companies like Agree Realty become increasingly significant. This offering represents a proactive step toward navigating future uncertainties and seizing the potential opportunities that lie ahead.

Stakeholders and potential investors are encouraged to review the registration statement with the U.S. Securities and Exchange Commission (SEC) for comprehensive details regarding the offering. Such strategic movements will likely place Agree Realty in a position to adapt and thrive amid fluctuating economic conditions.

In conclusion, this announcement marks a pivotal moment for Agree Realty, signifying not just a necessity for immediate financial maneuvers but a forward-thinking approach to future growth and operational excellence. Only time will tell how this offering will shape the company’s trajectory in the competitive real estate market.

Topics Financial Services & Investing)

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